American Airlines stock price target raised to $18 from $13 at TD Cowen

Published 27/10/2025, 19:52
American Airlines stock price target raised to $18 from $13 at TD Cowen

Investing.com - TD Cowen has raised its price target on American Airlines (NASDAQ:AAL) to $18.00 from $13.00 while maintaining a Buy rating on the stock. The new target represents significant upside from the current price of $13.46, with analyst targets ranging from $10 to $20. According to InvestingPro data, the stock’s current valuation appears fairly priced based on its Fair Value analysis.

The price target increase follows American Airlines’ third-quarter 2025 results, fourth-quarter 2025 guidance, and preliminary management commentary on 2026 performance expectations.

TD Cowen noted that American Airlines’ revenue per available seat mile (RASM) should continue to benefit from an improving industry backdrop combined with tailwinds from recovering corporate traffic.

The firm also highlighted additional positive factors including American’s new co-brand card deal, favorable mix shifts for network and cabin, and optimization of revenue management and retailing.

TD Cowen indicated that the risk/reward ratio for American Airlines stock appears favorable at current levels, supporting its decision to maintain a Buy rating while raising the price target.

In other recent news, American Airlines reported a narrower-than-expected loss for the third quarter of 2025, with an earnings per share (EPS) of -$0.17, surpassing the forecasted -$0.28. The airline also achieved record third-quarter revenue of $13.69 billion, slightly above the anticipated $13.63 billion. In light of these results, American Airlines has raised its full-year 2025 earnings per share guidance to a range of $0.65 to $0.95, up from its previous midpoint of $0.30. Despite these improved figures, Goldman Sachs has maintained its Sell rating on American Airlines stock, with a price target of $10.00. The firm reiterated this stance even though American Airlines’ shares rose approximately 5.5% following the earnings announcement. These developments reflect the ongoing financial adjustments and market reactions surrounding American Airlines.

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